India Opens Doors to 100% FDI in Space Sector

Prime Minister of India
The Prime Minister, Shri Narendra Modi addressing at the Silver Jubilee Celebration Ceremony of NASSCOM, in New Delhi on March 01, 2015.

The Union Cabinet of India, led by Prime Minister Narendra Modi, has greenlit significant amendments to the Foreign Direct Investment (FDI) policy for India’s space sector. This move paves the way for up to 100 percent FDI in India’s burgeoning space industry.

The approved reforms aim to streamline and liberalise entry routes for foreign investment across various segments of the space sector, including satellites, launch vehicles, and associated systems. Furthermore, the amendments facilitate the establishment of spaceports and the manufacturing of space-related components and systems.

Under the revised FDI policy, investors can now explore opportunities to invest in Indian companies operating in the space sector, presenting a lucrative avenue for international collaboration and innovation.

The satellite sub-sector of India has been delineated into distinct activities, each with its own FDI thresholds. Launch vehicles permit up to 49 percent FDI, satellites allow for 74 percent FDI, and satellite components welcome 100 percent FDI.

Previously, government approval was mandatory for FDI in the establishment and operation of satellites. However, in alignment with the Indian Space Policy 2023, these amendments represent a significant shift towards a more investor-friendly regulatory framework.

This bold move is poised to attract potential investors from around the globe, bolstering India’s position as a leading player in the global space arena and propelling its space industry to new heights of success.